The global feed additives market is projected to be valued at $37 billion USD by the year 2020, up from $28.6 billion in 2016. This equates to a compound annual growth rate of 5.3 percent in the forecasted time period.
Feed additives are a vital component of animal nutrition. They help to enhance the quality of the food that animals are supplied with, thereby improving the health and performance of the animals. Additionally, feed additives help to improve the yield and the quality of the food that is obtained from the origin animal.
Factors driving the increased the growth of the global feed additives market
There several factors that are contributing to the growth of the global feed additives market. These factors include:
- Shifting demographics, such as the overpopulation of urban spaces
- The rise in income
- The increased trend of dual income families
- Busy lifestyles in developing regions, such as Asian Pacific nations
All of these factors have lead to the increased use of fast food. This had lead to an increase in domestic use of both meat and seafood products. Add to these factors the fact that growing technological innovations in the meat processing industry and growing supplies of industrial livestock, and the demand for high-quality meats has driving. As a result, the need for feed additives to improve the quality of these meats has soared.
An increase in the consumption of animal proteins in Asian Pacific nations, and epidemic outbreaks that have occurred as a result of low-quality meat have also increased the importance and the need for the feed additives market.
How feed additives are used
Livestock farmers are having a difficult time supplying the demand for animal sourced proteins. As a result, there has been an increased demand for feed additives in order to ensure that livestock they are producing is high quality and meets strict regulations.
Feed additives are used added to the foods that are fed to livestock. Their purpose is to enhance the nutritional quality of the animals, thereby making them healthier for consumers. Given the fact that it can be difficult for farmers to procure naturally-sourced feed, they turn to manufactured products to feed their livestock.
Livestock is raised under highly controlled conditions. They are provided with the essential nutrients that they need to thrive and meet the needs of consumers through compound feed and feed additives. The production of meat has become industrialized, and this method is quickly replacing traditional methods of farming on a global scale. This shift is expected to lead to a parallel in growth in the feed additives industry.
Factors that could inhibit the growth of the global feed additives market
Though the need for animal sourced proteins is on the rise, and meat production has become industrialized, necessitating the increased use of feed additives, there are still factors that could inhibit the growth of this market. Namely, the stringent regulations that have been put on the production of feed additives, particularly in Europe and North America, have restricted the growth of this market.
The volatility of prices and the unreliable supply of raw materials has also lead to the restriction of this market. Raw materials and supplements are combined in different quantities, thus yielding compound feed for different species of animals. Though the varying cost of raw materials does limit the growth of feed additives market, it does serve as a driving force for this market.
New opportunities in the feed additives market
In addition to the growing demand for meat sourced proteins and the industrialization of meat products, there are other opportunities for growth in the global feed additives market; namely, the increased demand for organic meats.
More people are looking for organically sourced meats, which means that the additives animals are feed must also be derived from organic materials. This has created an opportunity for companies to invest further in the research and development of organic feed additives.
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Global feed additives market by sector
The poultry sector is the largest contributor to the global feed additives market. In 2016, it accounted for more than 35 percent of this market.
The beef sector also contributed to the growth of the global feed additives market, as did the seafood sector; however, these two sectors did not contribute nearly as much to this market as the poultry sector did or is projected to in the future.
The feed additives market in China
While several regions contribute to the global feed additives market, China heads the market. This country is the largest producer and consumer of livestock, and it is expected to continue to be the largest consumer for the foreseeable future. The rising population, the high per capita income, the accessibility of products as a result of improved infrastructure, and the improved domestic meat and dairy product systems has all contributed to the growth of the feed additives market in China.
Asian Pacific companies and the global feed additives market
Next to China, Asian Pacific countries are the largest contributors of the global feed additives industry. Moreover, countries such as Indonesia, Thailand and India exhibit an excellent potential for business growth in this industry. The growth of the economy, the industrialization of manufacturing livestock, the increase awareness of farmers and the support of the government are all factors that drive the growth of the market in this region.
Summary of the global feed additives market
As the global population continues to grow and as more and more people are looking for healthy sources of animal protein, the global feed additives industry is expected to continue growing for the foreseeable future. New innovations and products will surely be created in order to further enhance the quality of meats and supply the demand from consumers. This market will prove to be a valuable one for investments.